The OCP Group, a leading player in the phosphate and plant nutrition sector, has reported a resilient performance in the first half of 2026. Despite a challenging operating environment, the group's revenue reached 48.372 billion dirhams, a 7.3% decrease from 52.166 billion dirhams in the same period last year. This decline reflects lower sales volumes in key segments, amid economic constraints that affected demand in several major markets.
The group's solid fundamentals and strategic decisions on production levels, raw material sourcing, and product mix optimization enabled it to maintain a resilient performance. OCP had secured sulfur stocks before the sharp price increase and moved forward with a part of its maintenance program to preserve operational flexibility for the rest of the year. This proactive approach helped mitigate the impact of higher sulfur and ammonia prices.
OCP continued to ramp up production and sales of Triple Superphosphate (TSP), a phosphate-rich fertilizer that requires significantly less sulfur and no ammonia. This strategic shift reduced the group's exposure to rising raw material costs. Combined with its competitive cost structure and flexible industrial model, OCP strengthened its resilience in a market marked by exceptional increases in raw material costs and declining global fertilizer demand.
The decline in fertilizer demand was mainly due to decreased economic accessibility for farmers, exacerbated by destocking and seasonal factors. These factors weighed on sales volumes for fertilizer producers during the period. Despite this challenging environment, OCP maintained a diversified global customer base and increased the share of TSP in its product mix, offering a more accessible solution for farmers with significant agronomic benefits.
Mostafa Terrab, President and CEO of OCP Group, stated that the company maintained a solid margin profile throughout the first half, with an EBITDA margin of 28% in the first six months and 27% in the second quarter. EBITDA reached 13.307 billion dirhams, down 28.5% from the previous year, while the gross margin stood at 26.369 billion dirhams, compared to 33.345 billion dirhams last year.
Despite the decline in key indicators, the group considers its margin level solid given the market conditions. Capital expenditures totaled 16.067 billion dirhams, up nearly 6% from the same period in 2025, reflecting the group's continued investments in a less favorable business environment. OCP Group operates globally in the phosphate and plant nutrition sector, serving over 350 clients and employing more than 17,000 people.
Going forward, OCP aims to adapt its offerings to market conditions while preserving its ability to meet the needs of different regions. The group's strategic focus on TSP and other products is expected to help navigate the complexities of the global fertilizer market. With its diversified customer base and solid fundamentals, OCP is well-positioned to address the challenges and opportunities in the sector.
Key points
- OCP Group's revenue declined 7.3% to 48.372 billion dirhams in the first half of 2026.
- The group maintained a solid EBITDA margin of 28% in the first six months of 2026.
- OCP increased the share of Triple Superphosphate (TSP) in its product mix to reduce exposure to rising raw material costs.
